While markets remain fixated on artificial intelligence stocks, European stocks sold off in the wake of Kremlin saber rattling following Ukraine’s use of U.S. missiles to strike targets inside Russia’s borders.
President Vladimir Putin has approved changes to Russia’s nuclear doctrine to treat an attack from a non-nuclear state, if backed by a nuclear power, as a joint assault.
The Vanguard FTSE Europe ETF VGK , which is down over 5% since the U.S. election, fell by 1% for the day on the news from the war in Ukraine.
The iShares MSCI Europe ESG ETF sold off as well but remains up by 3.25% for year-to-date beating the iShares Core MSCI Europe ETF IEUR by over 2% for 2024 so far.
While talk of nuclear retribution left investors rattled, market analysts note that sentiment among European institutional investors is still fixed on the impact of changing U.S. policy. Bob Savage, head of market strategy for BNY Mellon, said in a note to investors on Tuesday that the “behind-the-scenes story for markets remains one about monetary policy and rates driving risk.”
Trump’s son joins anti-woke investment fund
President-elect Donald Trump’s son has announced he is joining the investment firm 1789 Capital.
Founded by former Bank of New York executive Omeed Malik, 1789 has struggled to raise assets for private equity investments in the “Republican/Parallel” economy since launching in 2023. Industry observers cite the decision to hire Donald Trump Jr. as a way to supercharge capital raising in the wake of the Republican election sweep in November. Malik and the younger Trump partnered in the launch of the conservative online market place PublicSquare PSQH , which has lost 90% of its market value since its market debut in 2021.
In entering the investment industry, the president-elect’s son follows in the footsteps of Trump advisor Vivek Ramaswamy.
Ramaswamy’s Strive Asset Management, an Ohio-based asset management firm, is relocating to Dallas, Texas, in early November to join the so-called “Y’all Street” movement of financial service firms to the Lone State state.
Strive has recently launched a high net worth advisory firm focused on crypto assets and filed for a fossil fuel focus interval fund in October. Trump has tapped Ramaswamy to co-lead the Department of Government Efficiency. The newly created agency is expected to possibly loosen regulations on crypto investments.
Wind power industry looks to Thune
Sen. John Thune, the South Dakotan elected to serve as the next Senate majority leader, is seen by renewable energy proponents as a potential ally. Thune has been a champion of wind turbine technology in the past. South Dakota currently receives more than half of its electricity from wind turbines.
A potential ally on Capitol Hill could prove invaluable. The incoming Trump administration could target wind projects as it seeks to dismantle Biden-era clean energy initiatives. The possibility of a White House disinvestment has soured investor sentiment for the sector, with the Global X Wind Energy ETF [WNDY] down by more than 8% since late October. Both President-elect Donald Trump and Vice President-elect J.D. Vance have disparaged wind power. “I think wind is the biggest scam out there. It’s total b******t. It’s also pollution,” Vance said in an interview with Joe Rogan in October.
